<p>This paper investigates the evolving role of language in international trade patterns between 2000 and 2019, a period marked by the emergence of Asia as a central player in global commerce. Drawing on a panel of bilateral export data for 185 countries, we combine a two-step structural gravity model with detailed linguistic indicators from the Domestic and International Common Language (DICL) database. We distinguish between official, native, and acquired language links, as well as linguistic proximity measures, to assess how different types of linguistic affinity are associated with trade patterns. The results reveal that shared official and native languages are positively linked with trade flows, but their influence is concentrated in regions with strong colonial or institutional ties, such as Europe, Africa, and the Americas. In contrast, acquired language proficiency and linguistic proximity are more strongly related with trade flows in certain regions, especially in Asia. Temporal analysis further shows a decline in the association between native language alignment and trade, while the estimated coefficients for acquired languages increase over time. These findings support the view that while historical linguistic ties remain relevant, global trade is increasingly characterized by more flexible communication environments. The paper contributes to the literature by documenting both regional and temporal heterogeneity in linguistic effects on trade, highlighting the strategic importance of linguistic capacity in today’s interconnected trade landscape.</p>

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The evolving role of linguistic factors in international trade: regional and temporal evidence from a two-step gravity approach

  • Ticiana Grecco Zanon Moura

摘要

This paper investigates the evolving role of language in international trade patterns between 2000 and 2019, a period marked by the emergence of Asia as a central player in global commerce. Drawing on a panel of bilateral export data for 185 countries, we combine a two-step structural gravity model with detailed linguistic indicators from the Domestic and International Common Language (DICL) database. We distinguish between official, native, and acquired language links, as well as linguistic proximity measures, to assess how different types of linguistic affinity are associated with trade patterns. The results reveal that shared official and native languages are positively linked with trade flows, but their influence is concentrated in regions with strong colonial or institutional ties, such as Europe, Africa, and the Americas. In contrast, acquired language proficiency and linguistic proximity are more strongly related with trade flows in certain regions, especially in Asia. Temporal analysis further shows a decline in the association between native language alignment and trade, while the estimated coefficients for acquired languages increase over time. These findings support the view that while historical linguistic ties remain relevant, global trade is increasingly characterized by more flexible communication environments. The paper contributes to the literature by documenting both regional and temporal heterogeneity in linguistic effects on trade, highlighting the strategic importance of linguistic capacity in today’s interconnected trade landscape.